- Company is on pace to add more than 2.1 million new customers
- CEO Legere sees a gain of more than 1 million post-paid users
T-Mobile US Inc. is on pace to add more than 2.1 million total subscribers in the third quarter, surpassing last quarter’s gains, as promotions like free music streaming and data rollover continue to attract customers, Chief Executive Officer John Legere said.
Of those, 1 million will be lucrative post-paid users, Legere said Friday during the Goldman Sachs Communacopia conference in New York. Those are the more lucrative customers who pay their bills at the end of the month as opposed to prepaid customers who pay before they use the service.
T-Mobile overtook Sprint Corp. in July to become the third-largest U.S. wireless carrier by number of users. At that time, the Bellevue, Washington-based company raised its full-year forecast for post-paid customer additions to 3.4 million to 3.9 million. The company returned to profit last quarter, and its ability to attract new users has put pressure on larger carriers like AT&T Inc. and Verizon Communications Inc.
On Thursday, Verizon said 2016 earnings would “plateau” at 2015 levels, as the company deals with wireless competition and a continued slowdown of landline unit sales.
Also on Thursday, Altice NV Chairman Patrick Drahi announced a $17.7 billion deal for Cablevision Systems Corp. Among Drahi’s next targets are more cable-TV systems and a wireless company.
Legere said that as cable companies look to enter the wireless business, they are more apt to acquire carriers like T-Mobile than offer wireless service through network-sharing agreements.
T-Mobile fell 1.4 percent to $41.88 at 2:12 p.m. in New York. Through Thursday, the stock is up 58 percent this year compared with a 13 percent gain by Sprint.